Podcast Summary: WSJ What’s News

Episode: What’s News in Earnings: Inside Airlines’ Holiday Pricing Strategy
Date: October 28, 2025
Host: Jacob Passy, Wall Street Journal
Guest: Dean Sealed, WSJ Airline Industry Reporter

Overview

This episode dives into the state of the airline industry during the latest earnings season. Host Jacob Passy and WSJ reporter Dean Sealed discuss recovering travel demand, evolving airline pricing strategies—especially for the holidays—and notable challenges facing carriers. The conversation reveals which airlines are poised for holiday success, how new pricing models work, and what travelers can expect when booking flights in the coming months.

Key Discussion Points & Insights

1. Travel Demand Rebound

• [00:18 – 01:48]

  • Earlier in the year, travel demand was sluggish due to a mix of macroeconomic concerns, a fatal air crash in January, and political uncertainty (notably April’s Trump tariff campaign).
  • Demand began to recover in late summer, varying by airline:
    • Some saw a surge as early as July.
    • Others noticed more significant pickups in August and September.
  • This positive trend is carrying over into the holiday season.

  Quote:

  "Demand has actually definitely been on an upswing right now... we're seeing that carrying into the holiday season."
  – Dean Sealed, [01:11]

2. International Travel & Premium Revenue

• [01:49 – 02:29]

  • International travel is especially strong, with increased sales in premium cabin seats.
  • Longer trips mean travelers are willing to upgrade for comfort and amenities.
  • Airlines are introducing new transatlantic routes to capitalize on this demand; for example, United is expanding to underserved European destinations.

  Quote:

  "Premium seats tend to be correlated with an increase in international travel... we've seen some of the carriers catch on to that, too. "
  – Dean Sealed, [01:52]

3. Rising Airfares & The ‘Add-On’ Economy

• [02:30 – 03:32]

  • Airlines are using new pricing models to boost revenue in a high-cost, low-margin environment.
  • "The age of the add-on" means more fees for features like extra leg room, baggage, or priority boarding.
  • This strategy raises revenues even while operating costs climb.

  Quote:

  "We're living right now in the age of the add on. Flying has always been a very low margin product and so airlines are always trying to find ways to squeeze a little bit more profit out."
  – Dean Sealed, [03:05]

• Delta’s Perspective:

  • Ed Bastian, Delta CEO (paraphrased), describes high-income travelers as enthusiastic about paying for premium experiences:

  Quote:

  "Their number one objective is to travel, to go out and adventure, to invest in themselves, invest in the experienced economy... and that's what's driving the great results that we're seeing."
  – Ed Bastian, Delta CEO via Dean Sealed, [02:45]

4. Airline Troubles & Notable Struggles

• [03:33 – 04:18]

  • Alaska Air had a challenging quarter:
    • Revenue up, but profits down 69% due to rising costs.
    • Suffered a major IT outage, canceling about 400 flights—worse than another outage three months prior.
  • Their outlook remains uncertain for the remainder of the year.

  Quote:

  "It's hard not to point out that Alaska Air had a pretty tough week last week...there was another IT outage just about three months ago...this one was much worse."
  – Dean Sealed, [03:39]

5. Outlook for Holiday Travel

• [04:19 – 05:02]

  • Airlines expect heavy fourth-quarter traffic, possibly breaking revenue records due to both higher prices and increased volumes.
  • Potential headwinds include uncertainty around a possible government shutdown affecting air traffic control during Thanksgiving.
  • As of recording, no significant operational impacts due to the shutdown, but this could change.

  Quote:

  "Airlines are expecting to see fourth quarter revenue records...of course we do need to now think too about the government shutdown if we see that edge into the Thanksgiving holiday."
  – Dean Sealed, [04:24]

6. Evolving Flying Experience for Consumers

• [05:03 – 05:27]

  • Travelers should scrutinize fare terms closely:
    • Basic economy may no longer include previously standard features, like checked bags.
    • Consumers need to be proactive and “on the offense” about what’s included and what incurs extra fees.

  Quote:

  "More and more consumers, we have to be on the offense when we're making our purchases. And that definitely applies now for the airlines."
  – Dean Sealed, [05:09]

Notable Quotes & Memorable Moments

| Timestamp | Speaker | Quote | |-----------|---------------|------------------------------------------------------------------------------------------| | 01:11 | Dean Sealed | "Demand has actually definitely been on an upswing right now... we're seeing that carrying into the holiday season." | | 01:52 | Dean Sealed | "Premium seats tend to be correlated with an increase in international travel..." | | 02:45 | Ed Bastian (via Dean) | "Their number one objective is to travel... invest in themselves, invest in the experienced economy..." | | 03:05 | Dean Sealed | "We're living right now in the age of the add on. Flying has always been a very low margin product..." | | 03:39 | Dean Sealed | "It's hard not to point out that Alaska Air had a pretty tough week last week..." | | 04:24 | Dean Sealed | "Airlines are expecting to see fourth quarter revenue records... think too about the government shutdown..." | | 05:09 | Dean Sealed | "More and more consumers, we have to be on the offense when we're making our purchases..." |

Timestamps for Key Segments

• 00:18 – 01:48
  Airline demand recovery and the year’s macro shocks

• 01:49 – 02:29
  International travel strength and premium product sales

• 02:30 – 03:32
  Why airfares are rising: the add-on model and Delta’s target customer

• 03:33 – 04:18
  Alaska Air’s financial/reporting and operational turbulence

• 04:19 – 05:02
  Holiday travel volume outlook and the government shutdown wildcard

• 05:03 – 05:27
  Advice for travelers on fare inclusions and hidden add-on fees

Takeaway

As airlines gear up for the busiest season of the year, travelers face higher fares, evolving pricing models, and a marketplace where knowing what you’re getting (and what it’ll cost extra) is more important than ever. While most carriers are optimistic about holiday demand and revenues, ongoing challenges like IT outages and the specter of a government shutdown add uncertainty to the outlook.